Battery cells are a crucial component of battery electric vehicles (BEVs) and stationary storage systems, significantly impacting cost, sustainability, performance, and safety. They account for 25–40 % of a BEV’s total cost and 40–60 % of its carbon footprint (CF). Sodium-ion batteries (SIBs) are often considered a more cost-effective and sustainable alternative to lithium-ion batteries (LIBs), yet comprehensive cost and sustainability analyses of SIBs remain scarce.
This study aims to assess the cost and sustainability of SIBs and LIBs across their value chains, identifying regional differences and key hotspots. Additionally, it explores strategies for reducing battery cell costs (LFP) in Europe. A process-based cost modeling (PBCM) approach is used to evaluate costs, while a Life Cycle Assessment (LCA) framework assesses environmental impact. The study first examines the CF and cost of five different SIBs and three LIBs produced in China and the EU, followed by specific recommendations for reducing CO2 emissions and costs for LFP batteries produced in the EU.
The results indicate that, at present, SIBs have 10–40 % higher CF values (except for Sodium-Iron Sulfate) and 13–41 % higher manufacturing costs than LIBs when produced at an industrial scale in the same location. To compete with LIBs, SIBs must improve in energy density, and active material costs must decrease. Relocating the battery value chain from China to the EU would currently increase costs by at least 25% but could reduce CO2 emissions by up to 38 %. Reducing the costs of LFP and other battery types must be balanced with sustainability considerations, ensuring that CO2 reduction efforts also account for cost efficiency. For LFP batteries, costs can be reduced by 11 % while simultaneously cutting emissions by 21 %. The most significant lever for cost reduction is a decrease in electricity prices and improvements in cell assembly.
Beyond cost, the carbon footprint of battery cell production is a key factor in site selection. While the EU currently holds an advantage, China’s lead in renewable energy installations may shift this balance. To maintain competitiveness, the EU must expand renewables to prevent future disadvantages.
Countries with high location-specific costs must either lower costs to become competitive in producing lower-energy-density batteries like SIBs or LFP or focus on high-energy-density cells such as NMC811 to improve cost competitiveness against China.
The cost advantage of SIBs over LIBs is largely dependent on lithium carbonate (Li₂CO₃) prices and active material cost developments. Key strategies for improving cost efficiency of SIBs include reducing nickel content in layered oxides, optimizing production processes, and leveraging economies of scale.
To further enhance sustainability and cost efficiency, European battery cell manufacturers should prioritize optimizing cell design and developing an integrated supply chain with strategic raw material partnerships.